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Google has indicated it is likely to press ahead with a multi-billion-dollar bid for a slice of the US airwaves in order to launch a nationwide wireless broadband network.
In July, Google pledged to meet the $4.6 billion reserve price for part of America's 700MHz spectrum in an auction process run by the Federal Communications Commission (FCC) as long as four “open access” conditions were met.
Today a spokesman told Times Online that the group was taking "all necessary preparations to become an applicant in the auction".
The company has until December 3 to reveal its plans to the FCC. "We fully intend to do so," the spokesman added.
"Our goal is to make sure that American consumers have more choices in an open and competitive wireless world".
Earlier this year, the FCC approved two of Google's "open access" terms, which will allow customers to use whatever device and software they want on the spectrum to be auctioned.
Two more controversial provisions put forward by Google, which would require the eventual licensee to sell access to its network on a wholesale basis to rivals and allow other parties physical access to infrastructure at realistic points, were not included.
The internet giant’s plans hold implications for Britain, where Ofcom, the communications regulator, is preparing to auction three key pieces of the UK airwaves that will be left vacant after television's digital switchover.
At least two of those could be used to roll out a nationwide wireless broadband network that would boast speeds similar to conventional broadband connections.
Spectrum around 700MHz, being auctioned off in both the UK and US, can travel long distances and penetrate walls easily – the same characteristics that made it attractive to broadcasters, who are vacating it to make way for all-digital television.
Crucially, the resource can be used for two-way communications – like conventional internet services.
“These are the Mayfair and Park Lane of the UK spectrum,” Richard Allan, director of government affairs for Cisco, the network hardware giant, said. “You can argue there would be a huge social value in them being used for wireless mobile.”
The realisation of such a plan would see a successful bidder emerge as the UK's first significant rival to BT in terms of internet infrastructure provision.
In the US, Google will face fierce oppposition from AT&T and Verizon, the two telecoms giants that currently largely control US wireless access.
It is widely thought that should Google win a spectrum licence it would look to extend its advertising business further into handsets.
Google has been testing an advanced wireless network at its headquarters in Mountain View, California, that could be used if it wins the spectrum and decides to become a national mobile carrier, it said.
Google recently spelt out its ambitions in mobile when it unveiled its own operating system for mobile phones, called Android.
The system will rival the market leader, built by Synbian, the British-based group that is owned by several of the largest mobile handset manufacturers.
In the UK, several groups are hoping to secure the 700 MHz asset. Different lobbying groups hope to secure it exclusively for mobile television, high-definition broadcasting.
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